BITCOIN/USD Wyckoff Cycle Analysis LONG!!!
BTC/USD has been in an Wyckoff Accumulation Phase since the beginning of January. This chart will compare the May 2021 crash followed by a long summer accumulation period next to the the recent November 2021 crash followed by a long accumulation that I believe will last until mid to late January 2022. To save you the long read I am BULLISH on BTC/USD with confirmation of a spring phase that will serve as an entry for a long position (SEE CHART).
In the midst of the blood and tears from this recent market crash it is normal for people to look for reasons in the news to scapegoat this 36% drawdown. This reading should provide you with some insight on why there is no reason to panic and also no reason to be trading this ranging market also known as the Wyckoff Accumulation to Wyckofian traders. I advise everyone do their own research on these varying schematics. Below I will provide a list of the price cycles of the Wyckoff method and with some quick research you may be able to justify your own findings.
Bearish Cycle- Distribution (White text)
1. Distribution
2. Mark down
3. Re-distribution
4. Markdown
Bull Cycle- Accumulation (Green text)
1. Accumulation
2. Markup
3. Re-accumulation
4. Markup
To make this cyclical you simply leave the Distribution cycle by entering the Accumulation cycle and vice versa. The markdown and markup is the price action following the distribution and accumulation phases respectively. With practice of this cycle identification it will serve as a good starting point of knowing when to short and long in your trades or when to add and close positions based off the definite order of these market cycles.
In the midst of the blood and tears from this recent market crash it is normal for people to look for reasons in the news to scapegoat this 36% drawdown. This reading should provide you with some insight on why there is no reason to panic and also no reason to be trading this ranging market also known as the Wyckoff Accumulation to Wyckofian traders. I advise everyone do their own research on these varying schematics. Below I will provide a list of the price cycles of the Wyckoff method and with some quick research you may be able to justify your own findings.
Bearish Cycle- Distribution (White text)
1. Distribution
2. Mark down
3. Re-distribution
4. Markdown
Bull Cycle- Accumulation (Green text)
1. Accumulation
2. Markup
3. Re-accumulation
4. Markup
To make this cyclical you simply leave the Distribution cycle by entering the Accumulation cycle and vice versa. The markdown and markup is the price action following the distribution and accumulation phases respectively. With practice of this cycle identification it will serve as a good starting point of knowing when to short and long in your trades or when to add and close positions based off the definite order of these market cycles.
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